Making the Most Out of Your House Fund

house-fundWhat is a house fund? Truthfully, it can mean many things to different people. It can pertain to the sum dedicated to the purchase of a residential property or it may solely pertain to the costs attributed to the repair and maintenance of one. Today, we’re taking on the latter as takes us in for a ride on how to make the most out of our house fund.

You see, owning a home regardless of type, size and location will have its fair share of responsibilities. This can even translate to expenses and maintenance doesn’t come cheap. A budget would be the most obvious thing to do but there’s more to it than meets the eye.

First of all, one has to fully understand the asset’s needs. No two are alike and so there has to be a degree of careful examination. One can do this on their own but sometimes it will take an expert to help better assess things. This is especially true if we’re talking about major renovations.

Preparation is also key. See to it that a portion of one’s regular income is allotted to the house fund. This way, one accumulates cash over time and there will be lesser chances of having to dump a huge amount in one go.

Invest in the right materials and equipment. Going cheaper might seem like the best way to go but in most cases, it’s a recipe for disaster. Avoid getting substandard repairs and maintenance as they won’t last long and they might even aggravate the situation instead of fix it. Find reasonable deals of good quality to make the most out of one’s expenditures. They’ll last longer and that’ll add value to the house.

Keep a tab on everything. As the years progress, one will get better. We’ll come across better deals or meet suppliers and service providers who can definitely walk the talk. Make sure to keep a record of which ones to call again and who to never call back.

Make minor repairs. The earlier a problem is solved, the lesser chances that they develop into something that’s too much to handle financially. highly advises everyone to tend to these little tasks no matter how minor they look. They may seem like nothing but that’s all the better because it means they can be easily and affordably solved.

Managing Asset Acquisitions

acquisitions-assetBuying a property is a task that requires a lot. It entails loads of time to research and not to mention adequate financing, the latter part being the more challenging in most cases. But how does one accomplish it like a seasoned professional? There are ways and you’d be surprised to find out how simple they are. You’d be pissed you haven’t thought about them yourself!

  1. Know the costs to the acquisition. – Are all of them necessary? Are the amounts accurate? You have to carefully analyze all of your expenses so you can adjust your spending accordingly. At the same time, acknowledge that costs do not come at once. When buying properties, expenses come before (e.g. security deposit and down payment), during (e.g. payments or installments) and after the purchase (e.g. ongoing costs).
  2. Find out about your finances. – Know your sources. A lot would make use of a combination of various funding methods such as but are not limited to capital equity, income and profits, business cash advance, receivables finance and credit. By knowing your sources, how they work, their availability or timing, their pros, consequences and availability, you can better budget and allocate them. Furthermore, make sure that you set limits.
  3. Make use of a budget. – We can never talk money without touching on this topic. A budget is a plan in financial form and it will be useful in ensuring that all needs are provided for, costs are within set limits and waste isn’t encouraged. You can’t afford to overspend your resources.
  4. Keep records and documents. – An accounting of your asset acquisition is not only for legal requirements and law conformity but also for purposes of tracking down the inflow and outflow of your resources. This applies even if you are purchasing a property for personal use. Having papers with you will be important when we get to the legal part of it all.
  5. Steer clear of the impulse. – Every act must come with a sufficient and valid purpose and not merely out of impulse. Cash is not easy to come by after all. In terms of buying assets, Alternative Bridging reminds investors that such purchases should not be ruled by emotions. Many buyers tend to get a property just because they feel an inclination towards it or they like a particular feature without putting into mind their needs and all the other factors necessary.


Property Bridging Finance: Common Crimes Against It

propertybridgingProperty bridging finance is considered to be one of the most effective interim methods that provide short term and immediate resources that cater to emergency or short term liquidity needs in terms of asset acquisitions.

The method works by providing a temporary loan to pay up for immediate costs such as down payments, security deposits, research costs, and professional fees to name a few. This is done while one’s permanent and main source of finance is still being processed or is yet to be available at a later date. In this sense, it bridges the main fund line and the asset acquisition thus its name.

But even an effective and seemingly seamless process can’t work to their full potential if not used properly. Many users due to lack of adequate knowledge commit crimes against property bridging finance some of which are listed below.

Crime #1: Using It to Replace Long Term Loans – Property bridging finance is an interim method that provides short term loans. It should not therefore be used as your permanent financing medium as it was not designed to work for the long term. A bridge is designed to only last from a few months to three years while long term credit goes from 5 to 30 or more.

Crime #2: Absence of Adequate Planning – You have to plan not only its use but also its procurement. Preparation is key to everything, a bridge included. This ensures that you take the right steps and not drive off the road. Part of planning includes looking for a good and reputable provider.

Crime #3: Lack of Proper Budget and Allocations – See to it that the resources you gather and receive from a bridge loan is used wisely. Although its spending is not restricted by users providing optimum flexibility, this must never be taken for granted. Budget and allocate them wisely to fit all the needs and requirements they were taken out for.

Crime #4: Failure to Map an Exit Don’t forget to determine how you’re paying for the property bridging finance too. Providers luckily offer a very flexible means to do so as users and borrowers get to choose between paying it prior or at maturity. This means that you can close the bridge before it matures as early as you can and would want to or you may opt to wait for its maturity date which at the same time is the moment that your permanent financing comes through.

What are Unsecured Business Loans

unsecured business loansIn the world of finance and credit, certain players have become huge game changers. Unsecured business loans are one of them. Now, why is that so? Alternative Bridging is here to help us answer that question.

Defined, unsecured business loans are issued and supported only by the borrower’s creditworthiness instead of a type of collateral like a fixed property. Simply put, lenders will only bank on your creditworthiness thereby keeping your properties safe from any risks of forfeiture in case of inability to fulfill payment terms.

Of course, with the high amount of risks for lenders the interest rates may be a little higher compared to a mortgage. At the same time, only individuals or entities that have a good credit standing are likely to be approved.

The very reason why they are considered a game changer is because they cater to a certain group that may not be serviced by other forms of credit that require capital. These are individuals or companies who do not have enough equity in their names for them to be approved a bank loan, a mortgage or any other similar type of credit. Another charm that unsecured business loans have is that in the event of bankruptcy, the court may discharge unsecured loans, unlike secured ones.

Now, how do you manage to get your application approved? We’ll let you in on a few tips below. Read on.

  • Get your financial reports ready. This will always be asked of you anyway so it is best if you prepare for it early on. It saves time and keeps you a few steps ahead. Remember that lenders and financers will gauge creditworthiness and one way to do this is through your financial records.
  • Clean up your files and reports. We do not mean clean up as in “lie or manipulate”. This means that you should ensure that all your records are systematized, purports what they ought to report and are easily understandable.
  • Be transparent with your intentions. It is easier to get any financing approved if you explain how you intend to use the funds. It creates a relationship of trust between you and the lender.
  • Talk about repayment plans. Lenders will want to be repaid of the unsecured business loans you got from them. If you talk about your plans and methods of repaying then you get all the more chances of an approval says Alternative Bridging. It shows your sincerity in following through your responsibility and end of the bargain.

When to Use a Short Term Loan

loansShort term loans, as the name suggests cover a brief period of time often ranging between a few months to three years at most. This is in stark contrast to long term financing which cover at least five to twenty years and sometimes even more. But apart from the obvious, when should you really go for the short route? We’ve asked the experts and here’s what they had to say.

When you need an immediate upgrade…

Not all investments and upgrades are worth an arm and a leg. Some of them do not cost as much and will not require as big of a financing. Plus, the time factor plays a role here. For example, there’s the need to invest in a bigger storage for all your company’s digital files or the purchase of a new delivery vehicle for your restaurant.

When a risk is at hand…

Short term loans, unlike their long term counterparts, don’t take as much time to process and for cash to be released. This makes them the perfect choice for emergency cases and in situations that involve risk. For instance, if you plan on buying a property chances are you’re competing with other investors. You need to drop that security deposit and/or down payment to get hold of it. A provisional patent protection is also another example.

When you’ve got short term costs…

Let’s say that you’re a shoe manufacturer. For the season, demand has doubled thanks to an order placed by a foreign client. However, you do not have enough machinery and labor to cover for the additional hours required to finish off the extra demand. To cover up for the gap, entrepreneurs often take out a short term credit to get the job done without having to get the job done.

When your main financing hasn’t come through…

There will be instances when you thought that you won’t need such a type of financing. You are after all up for your main fund line. Perhaps that bank loan or the mortgage you’ve been waiting for. However, there will be days when they’re not available at the same exact time that you need them. This creates a gap between the transactions, that of your main cash source and that of your purchase. To solve the dilemma, short term credit is taken out which eventually is closed by virtue of one’s long term financing as it arrives.

The Rules and Commandments of Property Bridging Finance

property-bridging-financeProperty Bridging Finance has become an effective and potent method that paves the way for asset acquisitions in spite of the timing constraints when it comes to permanent long term financing.

Because bank loans, sales, income generation and mortgages can take considerable time before they become available for use, many investors and buyers, individuals and organizations alike, have sought for Property Bridging Finance’s rescue.

It allows for the use of a short term temporary loan taken out for a few months to at most a year or two to be used for immediate needs and expenses spent in the search of and the purchase of a property at a time when one’s main fund source isn’t ready or available yet. It is a stop gap measure and connects the need and the financing, thus the term ‘bridging’.

Now just like any other method out there, there are a number of rules and commandments to be followed when using bridging finance and below is a list of them.

  • Transact with quality providers. Make sure to research and find out the best property bridging finance providers in your area. Different companies will vary in rates and terms so be careful as you compare. It would be great if you can find reviews and feedbacks about them.
  • Plan an exit route ahead of time. Albeit temporary, it is still a loan and it must be repaid at a future date. See to it that you plan its payment and closure ahead of time and prior to taking it which brings us to the next item on our list.
  • Choose a payment option that suits you. Property Bridging Finance providers allow borrowers to pay either at maturity date or before it as soon as one can and wants to.
  • Only borrow what is needed. Remember that this is a loan we’re dealing with so over-borrowing won’t be any good. Analyze and examine one’s needs and expenses to come up with a best estimate.
  • Budget and allocate the cash wisely. Property bridging finance unlike its long term counterparts is unrestricted in nature. This means that borrowers may use them whichever they deem fit and wish to. Although this is good news, it does not come with its drawbacks. Users must be disciplined enough to budget and allocate said funds in order to avoid wastages and shortages.

Get more info on bridging finance here:

When Short Term Loans are Wise

Payday loans summitA short term loan is basically a loan with a maturity of five years or less. This is as simple as it gets. There are many types and uses to it and have become a very powerful medium by which both individuals and organizations are able to provide for their immediate cash flow needs. But we have to remember that their use is designed for a purpose and is not meant for everything and everyone. Today, find out when the use of short term loans are considered to be wise with the help from

  • For Emergency Cases

Even the best companies need a helping hand when a dire situation arises. One can never be certain all the time and certain instances can hit the company leaving it shaken. This is true even with the presence of insurances. A short term loan becomes a safety net for emergencies; for example, natural calamities, accidents or machine breakdowns.

  • For Cash Flow Concerns

When there are not enough liquid funds to generate within one’s pocket and there is a need for instant funding, a short term loan becomes a smart choice without having to commit to any long term contract and wait up. These types of credit do not only cover a shorter period of time but are also able to make cash available faster.

  • For Seasonal Needs

There are cases where a business calls for help with fund shortages brought about by seasonal changes or event trends. Take for example a shoe manufacturing company. It gets an additional 50% order for the month of October thanks to a custom order. The added funds will be able to provide for the extra capital and staffing that one requires while waiting for the next revenue stream.

  • For Tight Situations

Long term loans are far trickier to apply for and the approval process is pretty taxing too. Let’s not forget how long it takes for the cash to be released. Startups and new business are also known to have a very slim chance with them. Good thing, short term loans are present to fix the dilemma.

  • For Growth and Expansion

Financing ventures can also call for short term loans says The upfront capital here demands immediacy. For example, opening up a new branch may require the purchase of a lot. Of course a down payment is required here and a short term loan shall become a great choice to finance such part of the acquisition given its immediate availability.

How to Budget Property Expenses

expensesBuying a property is no easy deal. Come to think of it, the price tag on an asset is quite hefty on its own and not to mention there are numerous initial costs and post expenses that come after a purchase. One has to be able to budget and plan finances wisely if you want no trouble. Luckily, we’ve talked to the team over at Alternative Bridging and they gladly gave us a few tips!

Know your finance options. There are many options when it comes to financing an asset acquisition. There are short and long term alternatives which all come with their own set of pros and cons. It is important that you analyze your needs wisely so you can find a match that suits it best. Popular examples of funding methods or sources include savings, income, bank loan, mortgage, bridge loan and proceeds from the sale of one’s own asset.

Determine how much you will need. Make a list of all your expenses. You have to first know the property you are planning to purchase because the factors surrounding it will have a lot of bearing. Remember that you will have expenses before, during and after the purchase. You have to consider and include all of them in your list.

Be aware of your limits. Do not go beyond your means. We have different needs and reasons for the acquisition. At the same time, we have varying capacities when it comes to the amount we are willing and are able to spend. Be sure that you don’t go past your limit or all hell shall break loose.

Have the asset surveyed. To get a better grip on the asset’s market value, repair and maintenance costs and property taxes among others, it would be best to have it surveyed beforehand. Never close on a property without doing this. Apart from the numbers, this shall give you some validation as to the condition and life of the asset and whether or not they match what the seller says.

Provide a room for adjustments. It would be impossible to create a budget that matches your actual expenses down to the very last cent says Alternative Bridging so don’t expect it to do so. There will be some variances but your job here is to ensure that they do not go beyond a certain percentage or mark. It still has to be reasonable and within your numbers.

Bridging Loans and When to Use Them

short-term-bridge-loanBridging loans pertain to short term funding used as an interim source or where one has to connect the gap between an immediate need or debt coming due and one’s yet to be available permanent source of funding. Upon the arrival of the latter, the bridge shall then be closed using it. It is for this reason why it has been branded as a stop gap measure.

These bridging loans can be used for a multitude of ways and occasions and today we shall talk about some of them particularly those directed at real estate purchases.

Scenario No. 1: When You Need Resources for Your Search…

Looking for the ideal asset that suits both your needs and financial capacity will need funds. First of all you are likely to spend for a broker or agent. You will have to visit sites and transportation isn’t free. Plus, you will pay for surveyors to examine your prospect properties. If your main fund line hasn’t come through yet, you can use the bridge for the time being.

Scenario No. 2: When You Have to Close on a Good Property…

Time is of the essence because chances are you are not the only buyer who’s aiming to get their hands on a prime asset. The clock is ticking and you need to beat those competitors. The only way for you to get a firm hold and assurance would be to pay for the down payment and security deposit to close a deal. You need a significant amount to do that.

Scenario No. 3: When You Need to Uphold Business Continuity…

Businesses shall have to acquire properties in a timely manner and it should be done in accordance with a certain timeline or else operations shall be ruptured. Delays can occur and that equates to losses. Entrepreneurs want nothing of that and so they use bridge loans to make hasten their acquisitions and avoid such mishaps.

Scenario No. 4: When You’re waiting for A Property Buyer…

One of the many ways that buyers fund for their acquisitions would be through the proceeds of the sale of their present asset or that of a redundant or unused property. Unfortunately, such sales are not certain and they may not happen immediately as wanted. There is no certainty as to their timing which puts investors at a disadvantage. With bridging loans, buyers can already acquire and move into the new place all while waiting for a buyer on their old property.

Commercial Bridging Finance Payment Options

Commercial bridging finance companies like, offers real estate buyers a means to fund their short term liquidity requirements while their permanent resource line is still to be made available. It gets its name from the term ‘bridge’ as it acts to connect two transactions, the first being the sale and the second being the long term financial resource.

Commercial bridging finance is one of the six main types of bridge loans available today alongside open, closed, residential, land and auction types. Apart from providing fast, hassle free and immediate funds to aid in the acquisition of commercial assets, one of its most celebrated advantages would have to be regarding its payment.

You see, commercial bridging finance payment options are described as flexible. In other words, they’re not tight or rigid and limiting thus allowing buyers to not feel strangled and restricted by them but rather helped.

To explain it further, let’s compare the financing method to traditional forms of credit such as bank loans and mortgages. These two are characterized by a strict payment scheme that is scheduled in equal intervals, often in months, and has to be paid on the assigned dates. Full payment must also be completed at maturity.

finance loansBridge loans are not like that. They are considered flexible and non-restricting because users and borrowers have the option to pay them out before or at maturity. Let’s take the two following scenarios for better visualization.

Before Maturity – Should the investor or company be able to come up with the necessary funds equivalent to the value of the bridge taken out, they can already pay and close it even before it has matured or prior to the arrival and availability of one’s long term resources.

At Maturity – Commercial bridge loans and bridging finance in general often has a maturity date set to match the arrival of the anticipated long term fund sources. Since most users make use of the bridge only to pay upfront costs (e.g. down payment, legal expenses, first few installments, etcetera), they are likely to intend using their main fund line to close it out.

Commercial bridging finance and its flexible payment options is indeed a powerful tool for investors, organizations and business entities in their pursuit of acquiring the aforementioned real estate assets. It helps them to avoid opportunity losses, to cut on time, to save on costs brought about by time appreciation and to make use of the acquisition to encourage and boost up their profitability.